NASA Plan for Commercial LEO Development to Achieve a Robust Low-Earth Orbit Economy from Which NASA Can Purchase Services As One of Many Customers

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NASA Plan for Commercial LEO Development to achieve a robust low-Earth orbit economy from which NASA can purchase services as one of many customers

Summary and Near-Term Implementation Plans

June 7, 2019

NASA Plan for Commercial LEO Development

Executive Summary NASA is opening the International Space Station for commercial business, unleashing U.S. industry on the path to a commercial economy in low-Earth orbit. NASA will partner with industry to achieve this commercial economy as the agency moves full speed ahead toward its goal of landing the first woman and next man on the Moon by 2024. Commercial companies will play an essential role in establishing a sustainable presence in low-Earth orbit as well as on and around the Moon, working with NASA to test technologies, train astronauts and strengthen the burgeoning space economy. A robust and competitive low-Earth orbit (LEO) economy is vital to continued progress in space. The United States is committed to encouraging and facilitating the growth of the U.S. commercial space sector that supports U.S. needs, is globally competitive, and advances U.S. leadership in the next generation of new markets and innovation-driven entrepreneurship. NASA has developed a long-term vision to achieve this goal where, one day, NASA will become one of many customers in LEO. This plan builds on, uses the capabilities of, and applies the lessons learned from over a decade of work and experience with commercial companies. This plan, entitled NASA's Plan for Commercial LEO Development, addresses supply, demand, and lays out steps to date that have been taken. It also includes detailed steps that will be taken in the near-term, mid-term, and long-term (see graphic below). NASA utilized the recommendations provided by 12 companies from recent market studies while developing this plan. The companies assessed the potential growth of a LEO economy and how to best stimulate private demand for commercial human spaceflight and other commercial and marketing activities in LEO. NASA developed a five part plan of near-term actions that will build on the work of the last two decades. These plans have all developed opportunities, policies and information that can be found on this website. First, NASA established a commercial use and pricing policy for the International Space Station (ISS) that will enable companies to purchase ISS resources for commercial activities, thereby reducing uncertainty and allowing them to build business plans; Second, NASA has announced the intent to allow companies to fly private astronauts to the ISS with the first mission as early as 2020; Third, NASA has initiated a process for developing commercial LEO destinations, including the overall strategy, timeline, and a synopsis for the solicitation of the ISS's Node 2 Forward Port to be followed by a solicitation for a free flying platform before the end of 2019; Fourth, NASA has laid out a plan to pursue opportunities to stimulate demand, including two ISS Utilization NRAs with calls for demand stimulation ideas as well as a call in the NextSTEP2 BAA Appendix J; And Fifth, NASA has updated a white paper providing quantification of the agency's long term needs in LEO.

June 7, 2019 ii NASA Plan for Commercial LEO Development

The overall framework for NASA’s commercial LEO development plan is shown in Figure 1 below, with the five-part near term plan highlighted in the bottom left of the figure.

Current/Near-Term Mid-Term Long-Term • Support NASA’s R&D needs and • Turn over LEO operations to s • Support NASA’s R&D needs and ISS

e National Laboratory needs ISS National Laboratory needs the private sector v

i • Leverage ISS capabilities to stimulate • Incorporate IP commercial needs • Purchase NASA’s needed t R&D Services from

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j • Meet International Partner (IP) (initially) and/or free flyers lower cost than ISS b Intergovernmental Commitments • Shift NASA/IP focus and O • Collaborate with IPs on new market • Stimulate global demand and resources towards development catalyze new markets exploration

• Document and share with industry • Partner with industry to develop • Complete transition of s

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t 1) Establish ISS commercial use and acquire needed services from destinations in LEO c pricing policy commercial destinations rather • Purchase ‘LEO National A 2) Enable private astronaut missions than ISS Lab’ services from to ISS • Avoid competition from ISS commercial provider? 3) Initiate process for commercial • Seek out and pursue development of LEO destinations opportunities to stimulate demand 4) Seek out and pursue opportunities both domestic and international to stimulate demand • Initiate transition of ISS assets 5) Quantify NASA’s long-term needs while still satisfying IP for activities in LEO agreements

Figure 1. NASA’s framework for commercial development of low-Earth orbit moves towards a robust economy in which NASA purchases services as one of many customers. NASA by its very nature is an exploration agency. We like to challenge the status quo and discover new things. We like to solve impossible problems and do amazing things. NASA also realizes that we need help and do not know everything. We can only accomplish amazing things by team work. NASA is reaching out to the US private sector to see if they can push the economic frontier into space. To evaluate this plan and identify opportunities for improvement, NASA is seeking feedback from industry and others through a Request for Information (RFI) on this plan and the five steps that have been outlined above by July 3, 2019.

June 7, 2019 iii NASA Plan for Commercial LEO Development

Contents Executive Summary ...... ii Contents ...... iv A. Background ...... 1 1) Policy Direction ...... 2 2) Recent Documents...... 4 3) Industry LEO Commercialization Studies...... 6 B. Commercial LEO Development Strategy ...... 9 1) Historical Context ...... 9 2) Commercial LEO Development Framework ...... 11 C. Commercial LEO Development Action Plan ...... 13 1) Establish ISS commercial use and pricing policy ...... 14 2) Private Astronaut Missions ...... 19 3) Initiate process for commercial development of LEO destinations ...... 21 4) Seek out and pursue opportunities to stimulate sustainable demand ...... 24 5) Quantify NASA’s long-term needs for activities in LEO ...... 26

June 7, 2019 iv NASA Plan for Commercial LEO Development

A. Background A robust and competitive commercial space sector is vital to continued progress in space. The United States is committed to encouraging and facilitating the growth of the U.S. commercial space sector that supports U.S. needs, is globally competitive, and advances U.S. leadership in the generation of new markets and innovation-driven entrepreneurship. NASA recognizes that to financially sustain a commercial platform in low-Earth orbit (LEO), developing new markets beyond the traditional research and technology development market will be required. While NASA will always have a requirement to train crews, perform fundamental and applied research, and develop technology in LEO, if NASA is to achieve its goal of becoming one of many customers of a platform after ISS end of life, a targeted strategy for enabling the development of a robust, sustainable commercially-driven economy in LEO is required. More than 50 companies already are conducting commercial research and development on the space station via the International Space Station U.S. National Laboratory, and their results are yielding great promise. In addition, NASA has worked with 11 different companies to install 14 commercial facilities on the station supporting research and development projects for NASA and the ISS National Lab. Opportunity exists to move projects beyond research and development into manufacturing and production. A new NASA directive enables commercial manufacturing and production, allows both NASA and private astronauts to conduct new commercial activities aboard the orbiting laboratory, and sets commercial prices for use of U.S. government resources in pursuit of commercial and marketing activities aboard the International Space Station. In addition to its primary mission to enable exploration and research, the space station is uniquely poised as a testbed and proving ground for new markets, innovative new technologies and systems that will enable the development of a robust economy in low-Earth orbit.

June 7, 2019 1 NASA Plan for Commercial LEO Development

1) Policy Direction As the Agency pursues its mission to move beyond low-Earth Orbit (LEO) to deep space exploration, we must find new ways to maintain access to LEO to fulfill NASA’s needs to conduct research, advance new technologies, and train astronauts. As the International Space Station is planned to be the last U.S. government-led crewed LEO platform, the Agency has developed a comprehensive strategy to ensure that a commercially-driven access to LEO is enabled. The 2018 NASA Strategic Plan defines NASA’s vision for LEO as a self-sustaining, space-based marketplace that provides economic benefits to the nation and societal benefits to all people. The vision is one where NASA is one of many customers of privately-owned, human- tended or permanently-crewed platforms supported by U.S. crew and cargo transportation capabilities that enable a variety of activities in LEO.

• The President’s 2020 Budget: – Drives toward a vibrant, U.S.-led economy in earth orbit. The budget provides funding for the International Space Station as well as for new commercial space capabilities that will facilitate a transition to a more robust and cost-effective approach to human space activities near the Earth. By 2025, the budget envisions commercial capabilities on the International Space Station as well as new commercial facilities and platforms to continue the American presence in Earth orbit.

• It is the sense of Congress that “an orderly transition for United States human space flight activities in low-Earth orbit from the current regime, that relies heavily on NASA sponsorship, to a regime where NASA is one of many customers of a low-Earth orbit commercial human space flight enterprise may be necessary.” – P.L. 115-10, NASA Transition Authorization Act of 2017

Over the past several years, numerous pieces of legislation have enumerated LEO commercialization goals and direction for the Agency. Congress provided guidance in the NASA Transition Authorization Act of 2017, reaffirming that commercial use of the ISS supports NASA’s mandate to “seek and encourage, to the maximum extent possible, the fullest commercial use of space,” as stated in Title 51 United States Code (U.S.C). § 20112(a)(4). The following excerpts relate directly to commercial utilization of the ISS: • Title III, Section 301 (a)(4) - “utilization of the ISS will sustain United States leadership and progress in human space exploration by” – (A) “facilitating the commercialization and economic development of low-Earth orbit"; and • Title III Section 303 (b)(1) - “an orderly transition for United States human space flight activities in LEO from the current regime, that relies heavily on NASA sponsorship, to a regime where NASA is one of many customers of a LEO commercial human space flight enterprise…”

June 7, 2019 2 NASA Plan for Commercial LEO Development

The FY19 President’s Budget Request further promotes NASA’s efforts to assist commercial space industry in developing a long-term, sustained commercial LEO presence. The Budget Request recommends that NASA’s efforts focus on enabling industry to develop and deploy commercial platforms in LEO.

June 7, 2019 3 NASA Plan for Commercial LEO Development

2) Recent Documents. Over the past year there have been several documents generated that set the stage for this plan for commercial LEO development. Those documents (shown in Figure 2) are summarized below, and links are provided to where they can be accessed.

Figure 2. Recent publicly available documents highlighting NASA’s plans for development of low-Earth orbit. Strategy for Human Spaceflight in LEO and Economic Growth in Space1 Developed by NASA and the Departments of State and Commerce, the strategy identified four national goals for human spaceflight in LEO. • To achieve a continuous U.S. presence in LEO – both with government astronauts and with private citizens – in order to support the utilization of space by U.S. citizens, companies, academia, and international partners and to maintain a permanent American foothold on the nearest part of the space frontier. • To create a regulatory environment in LEO that enables American commercial activities to thrive. • To conduct human spaceflight research in LEO that will advance the technology and systems required for long-duration spaceflight systems, including systems for interplanetary travel and permanent space habitation. • To expand and extend commercial opportunity through international partnerships and engagement. Forecasting Future NASA Demand in Low-Earth Orbit2 NASA has examined its potential future needs in LEO, such as space life and physical sciences research derived from the National Academies Decadal Survey, remaining research on the effects of the space environment on humans, technology demonstrations, life testing of

1 https://go.usa.gov/xmxJz 2 https://go.usa.gov/xmxJh

June 7, 2019 4 NASA Plan for Commercial LEO Development systems intended to be deployed in deeper space, and crew training. Earth science, astrophysics, and planetary science payloads could also be deployed if platforms offer opportunities at an advantageous price point over standalone missions. Although there are many LEO commercial service and capability suppliers on the horizon, the ultimate viability of a non-government enterprise is dependent upon whether there will be sufficient demand for those capabilities and services beyond NASA’s needs. In a mature, sustainable LEO market, commercial entities will have realistic business cases that do not rely on NASA as a primary tenant, but as one of many customers. This paper published in fall of 2018 summarizes NASA’s intial qualitative forecast for its future requirements in LEO to aid private industry and academia in planning for future work, research, and activity in LEO. It has been updated for this release with additional details and quantitative forecasts (see part 5 of this document). International Space Station Transition Planning3 This report lays out NASA’s activities and future plans for operations, research, and development in LEO. It discusses the LEO capabilities that the ISS currently provides the Nation, which include a sustained American presence in LEO, sustained American global space leadership, the continued development of a commercial space industry and a commercial space marketplace, the continued development of deep space exploration capabilities, and the continued return of research and development benefits to humans on Earth. It also discusses what NASA envisions the LEO landscape to look like in 2024 and beyond, as well as the key issues that need to be considered when contemplating ISS end-of-life and transition to other platforms. The report goes into detail on the LEO commercial marketplace, the ISS’s role in the expansion of humanity into deep space, the benefits currently being returned to Earth from research on ISS, and an evaluation of the technical and cost implications of continuing to operate ISS through and beyond 2024. New Focus Areas for Stimulating Demand via ISS Utilization NRA4 NASA will always have a need for a LEO human-rated platform: for crew training; for fundamental and applied research; and for advanced systems development and testing. Absent significant non-NASA demand for a human-rated LEO platform, NASA will be the only customer rather than one among many customers, therefore responsible for 100% of the operating costs of the platform. To avoid this outcome, NASA has released a solicitation seeking sustainable, scalable demonstration projects that are sharply focused on enabling high-value capabilities such as in-space manufacturing, cell line development, regenerative medicine and other fields that may lead to a financially self-sustaining demand for a future human-rated commercial LEO platform.

3 https://go.usa.gov/xmxSc 4 https://tinyurl.com/LEO-Demand

June 7, 2019 5 NASA Plan for Commercial LEO Development

3) Industry LEO Commercialization Studies. NASA awarded 12 companies (figure 3) a contract to conduct a 4-month study on the commercialization of LEO and ISS transition. Companies spanned a broad range from independent market consulting firms, transportation providers, future habitat suppliers, and market demand service providers. The study objectives were to evaluate business plans, review market data and concepts for commercial habitable platofrms in LEO, using ISS or that were free-flying. ISS transition concepts were also requested as well as recommendations for the government. Companies that Performed Studies

3 Figure 3. 12 companies were awarded contracts to study commercial development of low-Earth orbit and the role of the ISS. The results varied extensively on the configuration of a commercial habitable platform, the commercial offering, timing and schedule, the government funding or contribution of infrastructure required and the minimum government purchase of services. The key findings included the following points. • Commercial LEO human spaceflight destinations are only viable with significant U.S. government investment and purchase of services. NASA is expected to be an anchor tenant.

June 7, 2019 6 NASA Plan for Commercial LEO Development

• NASA astronaut habitation and government research and development is the largest near-term market for revenue with foreign country astronaut habitation being the next largest market. • It was not clear from the studies if the market was strong enough to support more than one LEO destination at this time. Some studies did not find a business case for even one destination. There was a risk identified that the commercial LEO destination may eventually need more NASA investment or service purchases than initially anticipated if the demand does not develop as expected. • Crew and cargo transportation costs were the major barrier to economic development of LEO and if not reduced, affect both the commercial LEO destination costs and market demand. • Future NASA costs for LEO include crew and cargo transportation, rent to a landlord station, research costs and government funding for habitat development. The studies identified key market areas that are anticipated to generate revenue for commercial destinations, as summarized below. • Accommodations – sleep stations, toilet, galley, etc. for tourists or foreign/US governments • Research & Development – use of facilities or space and power/utilities for customer facilities, and possibly commercial crewmember time to conduct experiments • In-space manufacturing of unique materials or products – use of facilities or space and power/utilities - Items made in space and then sold on the ground: For example, fiber optics - Items made in space for on-orbit use: For example, parts for maintaining or assembling spacecraft • Entertainment – films, documentaries, sporting events • Sponsorship and Advertising • Transportation of people and cargo to/from Low Earth Orbit • Large Structure and Satellite Assembly Some additional observations from the studies are summarized below. • Commercial market predictions vary, making forecast difficult - The markets are emerging – some might ‘take off’ and some might fail - Competition for revenue includes terrestrial, parabolic/sub-orbital flights, and other space stations (commercial or non-U.S.) • Early on, NASA’s use of and payment to destinations will be a key enabler for the emerging commercial market • NASA was often considered the “anchor tenant” of the commercial destinations in the studies • Studies generally assumed some number of NASA crew in Low Earth Orbit at all times, and NASA would pay ‘rent’ to a landlord Destination to accommodate them • Because NASA has a need for microgravity research and exploration testing in Low Earth Orbit in the future, many studies assumed their destinations housed U.S. government research

June 7, 2019 7 NASA Plan for Commercial LEO Development

• High crew and cargo transportation costs to/from LEO negatively affect both station costs and commercial market demand - Transportation costs make up a very large portion of the cost of a space station over time – on the order of 2/3 of annual costs are spent on crew and cargo missions - A reduction in the seat cost to transport tourists to orbit from 10’s of millions of dollars down to a few million dollars could significantly increase the number of potential tourists that can afford a trip - The cost is very high to transport raw materials into space, convert them into something else (such as fiber optics) and return them to the ground – so the end product must sell at a very high price - Continuing ISS use over the next few years supports commercial industry growth - Businesses want to use ISS directly, for example by attaching a commercial module to an ISS port, or if free-flying, they prefer to be co-located in orbit near ISS These studies were critical to helped shape this strategy for commercial LEO development. Summaries of the 12 studies are available online, including each of the 12 one-page summary charts, as well as the executive summary for each study.

June 7, 2019 8 NASA Plan for Commercial LEO Development

B. Commercial LEO Development Strategy 1) Historical Context For nearly two decades, as summarized in Figure 4, NASA has been moving from purchase of hardware and vehicles to purchase of services to support the government’s needs. Initially, NASA experimented with acquisition strategies through the purchase of non-essential services for ISS, such as the acquisition of water production capabilities through United Technologies Corporation. NASA moved on to stimulate the development of critical cargo delivery systems through the Commercial Orbital Transportation Systems Program which led to the development and purchase of commercial capabilities to provide Cargo Resupply Services for the International Space Station. This highly successful program resulted in the development of two U.S. cargo delivery capabilities which have provided over 70 tons of cargo to ISS over the past 7 years. A little more than two years after the end of the Space Shuttle Program, SpaceX and Northrop Grumman (formerly Orbital ATK) began successfully resupplying the space station with cargo launched from the United States. The companies developed the rockets and spacecraft through public-private partnerships under the agency’s Commercial Orbital Transportation Services (COTS) program, an initiative that aimed to achieve safe, reliable and cost-effective commercial transportation to and from the space station and low-Earth orbit. The companies are successfully resupplying the space station, and more missions to deliver scientific investigations and cargo are planned. This partnership changed the way NASA does business and strengthened the American commercial space industry while restoring American capability to deliver and return ISS cargo. NASA continued along this path by purchasing research capabilities as they became commercially available from over 10 commerical companies with their own hardware on the ISS. These research capabilities provided NASA a cost effective means to expand on the research pipeline at reduced costs. Additional companies continue to develop hardware and provide state of the art research capabilities on the ISS today. When NASA retired the space shuttle, not only was its cargo capability lost, America lost the ability to provide humans routine access to space. NASA's Commercial Crew Program (CCP) was formed to facilitate the development of a U.S. commercial crew space transportation capability with the goal of achieving safe, reliable and cost-effective access to and from the International Space Station and low-Earth orbit. CCP has invested billions of dollars in multiple American companies that are designing and developing these transportation capabilities. In 2010, NASA invested a total of nearly $50 million of the American Recovery and Reinvestment Act (ARRA) funds for Commercial Crew Development to stimulate efforts within the private sector to aid in the development and demonstration of safe, reliable and cost-effective crew transportation capabilities. It included the development and maturation of systems and subsystems, such as a spacecraft, launch vehicle, launch abort systems, environmental control and life support system, launch vehicle emergency detection systems and more. By supporting the development

June 7, 2019 9 NASA Plan for Commercial LEO Development of these human spaceflight capabilities, NASA laid the foundation for future commercial transportation capabilities. The United States is committed to encouraging and facilitating the growth of a U.S. commercial space sector that supports U.S. needs, is globally competitive, and advances U.S. leadership in the generation of new markets and innovation-driven entrepreneurship. NASA is preparing to secure the nation’s long-term presence in LEO by partnering with industry to develop commercial enterprises and capabilities for this transition that will stimulate and utilize private demand while supporting NASA’s long-term needs in LEO.

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Figure 4. For nearly two decades NASA been laying the groundwork to enable the commercial development of low-Earth orbit. Commerial LEO Development builds on, uses the capabilities of, and applies the lessons learned over the last nearly two decades of working towards a commercial LEO ecosystem.

June 7, 2019 10 NASA Plan for Commercial LEO Development

2) Commercial LEO Development Framework NASA has developed a long-term vision to achieve the national objective of a robust commercial LEO ecosystem from which NASA can buy services as a tenant rather than a landlord. The framework for this vision is shown in Figure 5. Pursuant to NASA’s 2018 Strategic Plan, NASA seeks to enable commercial human spaceflight enterprises in LEO. These enterprises must maintain and enhance U.S. human space flight leadership, while stimulating and facilitating broad commercial demand for U.S. supply of products and services, including transportation of cargo and crew. This plan lays out steps to date that have been taken, and details at a high level steps that are planned to be taken in the near-term, mid-term, and long-term, to secure this goal.